Enagas in $5 billion green energy and supply chain investment by 2030

Spanish gas grid operator Enagas expects to invest some $5 billion by 2030 on projects to ensure security of energy supply and decarbonisation.

Under its strategic plan to 2030, the EUR 4.8 billion investment will see the company aims to spend nearly EUR2.8 billion on projects including gas infrastructure, renewable hydrogen and biomethane production.

When interconnector projects such as an underwater gas pipeline between Spain and Italy and a gas link between Spain and Portugal are added, the total investment sum comes to EUR 4.8 billion euros, Enagas said.

Such interconnector projects form part of a 210 billion euro plan by the European Commission unveiled in May to reduce dependence on Russian fossil fuels and accelerate the energy transition.

The invasion of Ukraine by Russia, Europe’s top gas supplier, has prompted the European Union to rethink its energy policies amid sharpened concerns of supply shocks. Russia currently supplies 40% of the bloc’s gas and 27% of its imported oil.

“The strategic plan has one key purpose: to contribute to security of supply and decarbonisation, which are two sides of the same coin,” Enagas CEO Arturo Gonzalo Aizpiri said.

Enagas plans to invest in 30 projects for renewable hydrogen production, as well as in infrastructure such as storage facilities.

By 2030, Spain could contribute 21 billion cubic metres, equivalent to 2 million tonnes of hydrogen per year, to Europe, which represents 20% of the hydrogen production expected in Europe, Enagas said.